Best’s News & Research Service - November 04, 2022 10:36 AM (EDT)
AM Best Assigns Issue Credit Rating to Intact Financial Corporation’s Senior Unsecured Medium Term Notes
- November 04, 2022 10:36 AM (EDT)
Oldwick //BestWire// - AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to the recently issued $500 million, 5.459%, 10 year senior unsecured medium term notes (MTN) issued by Intact Financial Corporation (IFC) (Toronto, Ontario, Canada). The outlook assigned to this Credit Rating (rating) is stable. The Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of IFC’s operating subsidiaries and all other ratings of outstanding issuances remain unchanged.
IFC intends to use the net proceeds from this issuance to repay at maturity the entire outstanding aggregate principal amount of Intact U.S. Holdings Inc.’s 4.6% senior unsecured notes due November 2022. Any remaining net proceeds may be used for debt repayment and general corporate purposes.
IFC chose to issue this MTN in the United States mainly because U.S. funds were required to redeem the opening balance MTN outstanding, and to fund the U.S. acquisition of Highland Insurance Solutions. Highland is a managing general agent specializing in the builders risk segment of the construction market, and will expand Intact’s portfolio of owned distribution assets.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.